| Intangible Assets |
| (a) | As of December 31, 2025 and 2024 intangible assets are detailed as follows: |
| | | Useful Life | | | Average remaining amortization period | | | Gross balance | | | Accumulated Amortization | | | Net balance | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | | | Years | | | Years | | | Years | | | Years | | | MCh$ | | | MCh$ | | | MCh$ | | | MCh$ | | | MCh$ | | | MCh$ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Goodwill | | | — | | | | — | | | | — | | | | — | | | | 16,714 | | | | 16,714 | | | | — | | | | — | | | | 16,714 | | | | 16,714 | | | Intangible assets arising from business combinations | | | — | | | | — | | | | — | | | | — | | | | 56,249 | | | | 56,249 | | | | (39,553 | ) | | | (39,553 | ) | | | 16,696 | | | | 16,696 | | | Software or computer programs | | | 6 | | | | 6 | | | | 4 | | | | 4 | | | | 433,569 | | | | 379,572 | | | | (258,991 | ) | | | (221,016 | ) | | | 174,578 | | | | 158,556 | | | Total | | | | | | | | | | | | | | | | | | | 506,532 | | | | 452,535 | | | | (298,544 | ) | | | (260,569 | ) | | | 207,988 | | | | 191,966 | |
| (b) | Changes in intangible assets during the year 2025 and 2024 are as follows: |
| | |
Goodwill (1) | | |
Intangible assets
arising from
business
combinations (2) | | |
Software or computer programs | | |
Total | |
| | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | |
| Gross Balance | |
| | |
| | |
| | |
| |
| Balance as of January 1, 2025 | |
| 16,714 | | |
| 56,249 | | |
| 379,572 | | |
| 452,535 | |
| Acquisitions | |
| — | | |
| — | | |
| 58,597 | | |
| 58,597 | |
| Disposals/write-downs | |
| — | | |
| — | | |
| (9,474 | ) | |
| (9,474 | ) |
| Transfers | |
| — | | |
| — | | |
| 5,567 | | |
| 5,567 | |
| Impairment (*) | |
| — | | |
| — | | |
| (693 | ) | |
| (693 | ) |
| Total | |
| 16,714 | | |
| 56,249 | | |
| 433,569 | | |
| 506,532 | |
| | |
| | | |
| | | |
| | | |
| | |
| Accumulated Amortization | |
| | | |
| | | |
| | | |
| | |
| Balance as of January 1, 2025 | |
| — | | |
| (39,553 | ) | |
| (221,016 | ) | |
| (260,569 | ) |
| Amortization for the year (**) | |
| — | | |
| — | | |
| (41,453 | ) | |
| (41,453 | ) |
| Disposals/write-downs | |
| — | | |
| — | | |
| 8,304 | | |
| 8,304 | |
| Transfers | |
| — | | |
| — | | |
| (5,055 | ) | |
| (5,055 | ) |
| Impairment (*) | |
| — | | |
| — | | |
| 229 | | |
| 229 | |
| Total | |
| — | | |
| (39,553 | ) | |
| (258,991 | ) | |
| (298,544 | ) |
| Balance as of December 31, 2025 | |
| 16,714 | | |
| 16,696 | | |
| 174,578 | | |
| 207,988 | |
| | |
Goodwill (1) | | |
Intangible assets arising from business combinations (2) | | |
Software or computer programs | | |
Total | |
| | |
MCh$ | | |
MCh$ | | |
MCh$ | | |
MCh$ | |
| Gross Balance | |
| | |
| | |
| | |
| |
| Balance as of January 1, 2024 | |
| 16,714 | | |
| 56,249 | | |
| 322,174 | | |
| 395,137 | |
| Acquisitions | |
| — | | |
| — | | |
| 57,617 | | |
| 57,617 | |
| Disposals/write-downs | |
| — | | |
| — | | |
| (219 | ) | |
| (219 | ) |
| Reclassification | |
| — | | |
| — | | |
| — | | |
| — | |
| Impairment (*) | |
| — | | |
| — | | |
| — | | |
| — | |
| Total | |
| 16,714 | | |
| 56,249 | | |
| 379,572 | | |
| 452,535 | |
| | |
| | | |
| | | |
| | | |
| | |
| Accumulated Amortization | |
| | | |
| | | |
| | | |
| | |
| Balance as of January 1, 2024 | |
| — | | |
| (39,553 | ) | |
| (184,970 | ) | |
| (224,523 | ) |
| Amortization for the year (**) | |
| — | | |
| — | | |
| (36,265 | ) | |
| (36,265 | ) |
| Disposals/write-downs | |
| — | | |
| — | | |
| 219 | | |
| 219 | |
| Reclassification | |
| — | | |
| — | | |
| — | | |
| — | |
| Impairment (*) | |
| — | | |
| — | | |
| — | | |
| — | |
| Total | |
| — | | |
| (39,553 | ) | |
| (221,016 | ) | |
| (260,569 | ) |
| Balance as of December 31, 2024 | |
| 16,714 | | |
| 16,696 | | |
| 158,556 | | |
| 191,966 | |
| (1) | Goodwill corresponds mainly to business combination with Citibank Chile whose amount is of MCh$12,576
that represents the value of synergies to be generated in the combination process and the acquisition of know-how. |
| (2) | Intangible assets arising from business combinations include assets with indefinite useful lives acquired
in the business combination with Citibank Chile. |
| (*) | See Note No. 38 Impairment of non-financial assets. |
| (**) | See Note No. 37 Depreciation and Amortization. |
| (c) | As of December 31, 2025, the Bank records Ch$18,157 million
(Ch$13,889 million as of December 31, 2024) of assets associated with technological developments. |
| (d) | As of December 31, 2025 and 2024, there are no restrictions
on the intangible assets of the Bank. Furthermore, there are no intangible assets held as collateral for the fulfillment of obligations. |
| (e) | Impairment testing of Goodwill: |
For goodwill impairment purposes, testing
is carried out at the level of business segments described above and in Note No. 6 to the financial statements. This methodology is in
line with IAS 36, where business segments represent the lowest level within the entity at which the goodwill is monitored for internal
management purposes.
Accordingly, for goodwill impairment
testing purposes, goodwill acquired through business combinations has been allocated to four individual business segments, as follows:
| Business Segments | |
2025 | | |
2024 | |
| | |
MCh$ | | |
MCh$ | |
| Retail Banking | |
| 5,928 | | |
| 5,928 | |
| Wholesale Banking | |
| 2,135 | | |
| 2,135 | |
| Treasury | |
| 4,513 | | |
| 4,513 | |
| Subsidiaries | |
| 4,138 | | |
| 4,138 | |
| Total | |
| 16,714 | | |
| 16,714 | |
Below are the key assumptions
used for determining the value in use for impairment testing purposes:
| ● | The Bank determines the recoverable amount of the business segments
based on the value in use criteria by employing a Discounted Cash Flows (“DCF”) valuation model. The DCF model determines
the present value of the forecasted earnings that would be distributed to shareholders in the way of dividends, after complying with all
capital regulatory requirements. |
| ● | For
purposes of the goodwill impairment testing, the DCF model considers earnings projections
for a ten-year period, which is deemed as the period in which the Bank is able to achieve
the goals set in its long-term business strategy. |
| ● | Earnings projections result from business growth, particularly associated
with expected expansion rates for the local economy (i.e. GDP growth), the industry’s loan book and the Bank’s strategic goals
in terms of market share in total loans over the future. Then, based on historical data, linear regression analysis and expert judgement,
the Bank determines a loan growth multiplier (in real terms) for the industry’s loan book over GDP growth for the local economy.
This multiplier is expected to converge to normal levels in the medium-term (year five), after the downturn prompted by the COVID-19 and
the second-round effects of one-time policies adopted in order to deal with the pandemic that resulted in below-trend multipliers. Accordingly,
the loan growth multiplier would achieve 1.60 times from 2030 onwards. |
| ● | Following the estimated growth rates for the Chilean economy and the
banking industry in terms of loans to customers, expansion rates of the Bank’s loan book are determined by considering the achievement
of the Bank’s long-term strategic goals. Therefore, real growth rates are expected to be slightly higher than the industry rates
within the ten-year period, provided that the Bank expects to recover market share by achieving a 16.5% market stake at year 2030 and
remains unchanged afterwards. |
| ● | For
purposes of business segments valuation, the DCF model considers discount rates that are determined by carrying out a linear regression
analysis based on historical data of daily stock returns for the Bank and the market portfolio (IGPA index in Chile). To do this, an
index linear model is applied, which is widely used in finance for these purposes. After estimating the model parameters (alpha and beta),
the Capital Asset Pricing Model (“CAPM”) is utilized to determine the cost of equity or discount rate for shareholders’
cash flows. When using CAPM, a 7.0% nominal discount rate is computed by assuming long-term scenarios for market risk premium and the
latest available data (December 2025) for both inflation and long-term risk-free rate. We also use alternative methods, such as historical
return-on-market-equity (net income over market capitalization) and implied return-on-equity from price-to-earnings ratios projected
by market analysts. Based on these methods, we compute real discount rates of 6.1% by using the return-on-market-equity and 4.4% by means
of the projected price-to-earnings ratio. By combining the three approaches, an average real discount rate of 5.9% is computed. Based
on this data –and adopting a conservative approach– the Bank determines a real cost of equity of 9.0% as a baseline scenario
for discount rates used for valuation purposes. The Bank also carries out a sensitivity analysis by setting real discounts rates of 8.0%
and 10.0%. |
| (f) | Annual
goodwill impairment test: |
The annual goodwill impairment tests
for the years ended December 31, 2025 and 2024 did not result in an impairment loss on the goodwill of the Bank’s business segments
as their economic values were higher than their carrying amounts.
Banco de Chile and its subsidiaries
have no restrictions on intangible assets as of December 31, 2025 and 2024. Additionally, no intangible assets have been pledged as collateral
to secure the fulfillment of any financial obligation. Moreover, there are no amounts owed by the Bank on intangible assets as of the
aforementioned dates.
|